A path to better transportation

State should consider raising gas tax to pay for needed improvements

Published: Wednesday, December 12, 2012 at 1:00 a.m.

Last Modified: Tuesday, December 11, 2012 at 7:36 p.m.

State leaders have been conducting their annual, county-by-county meeting with local officials and the public. And, as usual, the locals have proposed an As they have in recent years, the state representatives and senators for Manatee and Sarasota counties gave cool receptions to most proposals, citing ongoing budget restraints and the need to promote cost-effective spending.

In an editorial Monday, we recognized that funding requests are frequently for local "wants" and not state needs. But that is not always the case.

For instance, during a meeting this week with the "legislative delegation," Sarasota County Commissioner Nora Patterson urged legislators to restore $383 million that was removed from the state transportation trust fund to compensate for shortfalls in the overall budget.

The transportation fund is managed by the state; most of its revenue comes from the State Highway Fuels Sales Tax (12.6 cents per gallon). Although the fund is operated by Florida and revenues are allocated to state-sanctioned projects, the monies are spent on roads, bridges and transit in counties and cities.

What's more, many decisions on transportation projects are made locally -- by metropolitan planning organizations comprised of elected city and county officials.

Restoring the revenues taken from the transportation trust fund is the least the Legislature could, and should, do.

Projects are underfunded

The 26 MPOs estimate that transportation projects on the books in Florida are underfunded by $60 billion. In comparison, Florida spends about $6.5 billion annually on transportation; it's clear, then, that the $383 million is relatively small change.

State Sen. Nancy Detert, R-Sarasota County, told Jeremy Wallace of the Herald-Tribune this week that Florida needs new ways to fund transportation projects. She's right.

Fortunately, an advisory council formed by Florida's MPOs has already recognized the funding needs -- and proposed ways to meet them.

The advisory council met for two years to study funding options and, in April, proposed -- to the governor and Legislature -- its top ideas for increasing revenue and efficiency in collections.

The group recommended raising the Fuels Sales Tax by 2 cents annually -- for each of the next five years -- and indexing the levy to account for inflation.The council further suggested indexing all state, county and municipal fuel taxes to the Consumer Price Index -- a sensible idea because per-gallon taxes are inflexible.

(The National Surface Transportation Infrastructure Financing Commission, established by Congress, reached a similar conclusion, recommending an increase of 10 cents per gallon in the federal gas tax -- indexed to inflation. As a long-term solution, the commission recommended switching to a tax based on number of miles driven instead of the amount of gas purchased.)

Major economic impact

In previous editorials, we have recognized that businesses, individuals and the state and national economies are sensitive to fuel costs, which include taxes.

However, those same constituencies suffer economically when local, state and national transportation is insufficient. Travel times are extended, delivery schedules are disrupted and the safety of truckers and motorists is at risk (remember that vehicle and driver insurance rates are tied to risks).

Just as important, the revenues generated from national and state fuel taxes are economic drivers. Studies by the MPOs indicate that every $100 million invested in transportation creates 1,075 jobs and $500 million in associated economic activity.

Transportation spending is, in short, good for the private sector and the economy. Whether the projects are federal, state or local, most of the work -- feasibility studies, designs, engineering and construction -- are performed by private contractors. Increased spending on transportation doesn't grow government; it sustains and fuels economic growth in the private sector, while providing vast public benefits.

The advisory council and national commission provided road maps for investing in Florida and the United States. Unless the Legislature and Congress can provide better directions, they should follow the proposed routes and invest in infrastructure.

<p>State leaders have been conducting their annual, county-by-county meeting with local officials and the public. And, as usual, the locals have proposed an As they have in recent years, the state representatives and senators for Manatee and Sarasota counties gave cool receptions to most proposals, citing ongoing budget restraints and the need to promote cost-effective spending.</p><p>In an editorial Monday, we recognized that funding requests are frequently for local "wants" and not state needs. But that is not always the case.</p><p>For instance, during a meeting this week with the "legislative delegation," Sarasota County Commissioner Nora Patterson urged legislators to restore $383 million that was removed from the state transportation trust fund to compensate for shortfalls in the overall budget.</p><p>The transportation fund is managed by the state; most of its revenue comes from the State Highway Fuels Sales Tax (12.6 cents per gallon). Although the fund is operated by Florida and revenues are allocated to state-sanctioned projects, the monies are spent on roads, bridges and transit in counties and cities.</p><p>What's more, many decisions on transportation projects are made locally -- by metropolitan planning organizations comprised of elected city and county officials.</p><p>Restoring the revenues taken from the transportation trust fund is the least the Legislature could, and should, do.</p><p>Projects are underfunded</p><p>The 26 MPOs estimate that transportation projects on the books in Florida are underfunded by $60 billion. In comparison, Florida spends about $6.5 billion annually on transportation; it's clear, then, that the $383 million is relatively small change.</p><p>State Sen. Nancy Detert, R-Sarasota County, told Jeremy Wallace of the Herald-Tribune this week that Florida needs new ways to fund transportation projects. She's right.</p><p>Fortunately, an advisory council formed by Florida's MPOs has already recognized the funding needs -- and proposed ways to meet them.</p><p>The advisory council met for two years to study funding options and, in April, proposed -- to the governor and Legislature -- its top ideas for increasing revenue and efficiency in collections.</p><p>The group recommended raising the Fuels Sales Tax by 2 cents annually -- for each of the next five years -- and indexing the levy to account for inflation.The council further suggested indexing all state, county and municipal fuel taxes to the Consumer Price Index -- a sensible idea because per-gallon taxes are inflexible.</p><p>(The National Surface Transportation Infrastructure Financing Commission, established by Congress, reached a similar conclusion, recommending an increase of 10 cents per gallon in the federal gas tax -- indexed to inflation. As a long-term solution, the commission recommended switching to a tax based on number of miles driven instead of the amount of gas purchased.)</p><p>Major economic impact</p><p>In previous editorials, we have recognized that businesses, individuals and the state and national economies are sensitive to fuel costs, which include taxes.</p><p>However, those same constituencies suffer economically when local, state and national transportation is insufficient. Travel times are extended, delivery schedules are disrupted and the safety of truckers and motorists is at risk (remember that vehicle and driver insurance rates are tied to risks).</p><p>Just as important, the revenues generated from national and state fuel taxes are economic drivers. Studies by the MPOs indicate that every $100 million invested in transportation creates 1,075 jobs and $500 million in associated economic activity.</p><p>Transportation spending is, in short, good for the private sector and the economy. Whether the projects are federal, state or local, most of the work -- feasibility studies, designs, engineering and construction -- are performed by private contractors. Increased spending on transportation doesn't grow government; it sustains and fuels economic growth in the private sector, while providing vast public benefits.</p><p>The advisory council and national commission provided road maps for investing in Florida and the United States. Unless the Legislature and Congress can provide better directions, they should follow the proposed routes and invest in infrastructure.</p>